The recent drop in the price of Bitcoin (BTC) has caused many to start looking more closely at what may be coming in the coming days. In light of this, Bloomberg has published that optimistic sentiments about this cryptomone currency may remain in the near future.
To draw these conclusions, Bloomberg took into account the low volatility that the leading cryptomone has had in the last few weeks and the way this has influenced the performance of the Bollinger Bands.
The analyst in question was Mike McGlone. According to him what we are witnessing is the consolidation of Bitcoin. So, the Bollinger Bands of the Bitcoin price are at their lowest.
Bollinger Bands are a widely used instrument not only in the analysis of cryptosystems, but also in Forex. If you’re curious about this point, you can check out our article on it.
Bollinger Bands for Forex Beginners: What are they? How to use them?
The Price of Bitcoin: Bloomberg’s Opinion
So far, Bitcoin whales have not been very active, especially compared to their activity in mid-June when the accumulation of BTC tokens was evident and noticeable.
In order to break through the resistance levels, McGlone explained that BTC must break above US$ 10,000 and even go beyond US$ 13,000. All of this must happen in order to truly talk about a bullish Bitcoin rally. He also stressed that it is critical that the price does not fall below US$ 6,500.
Finally, to put it in perspective we can quote part of McGlone’s analysis. „Its 260-day volatility, approximately 4.4 times that of the same measure of gold, is the lowest since April 2017. The average is about 6.4x and the peak was 12.2x in 2011“ he said. In other words, Bitcoin has slowly been getting closer to gold.
However, it should be mentioned that this is not the most optimistic prediction made by Bloomberg in recent months. At one point they even said that BTC could recover to historical highs of US$20,000, even reaching a new high of US$28,000.
What would happen if the price of Bitcoin remains at US$ 10,000?
While it is true that McGlover sees signs that may indicate a breakout in the near future, it should be noted that at this time Bitcoin System is still stuck in a „rut“, trading below US$10,000.
Recent events in this crypt currency, such as the 1% drop in its value, have a more or less clear explanation.
BTC options in June recently expired, and Thursday is statistically the most volatile day of the week with the highest trading volume. The latter can be seen in research conducted by the cryptomoney data firm Market Science.
Thus, volume and volatility usually decrease on Fridays, leading to a quiet weekend for the Bitcoin market.
What’s interesting is that unlike Bloomberg, for some analysts, Bitcoin’s inability to get above $10,000 indicates a possible loss of upward momentum, and they even consider it a sign of weakness at the moment.